Stoli Group

History

2024: Bankruptcy filing over ransomware virus attack

In early December 2024, the CEO of Stoli Group said that the ransomware virus attack in August led to the bankruptcy of two subsidiaries of the vodka producer in the United States. By the time the bankruptcy was declared, Stoli Group USA and Kentucky Owl (KO) owed $84 million.

In August 2024, Stoli Group's IT infrastructure was seriously damaged by a data breach and ransomware attack, Chris Caldwell, the company's CEO, said in a statement. - This attack significantly disrupted all Stoli Group companies, including Stoli USA and KO, as Stoli Group's Enterprise Resource Planning (ERP) system was disabled and most of Stoli Group's internal processes (including accounting functions) were put into manual mode.

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According to the general director, due to the attack, the Stoli Group was unable to track the repayment of debts and provide current financial data to creditors who accused the company of not fulfilling its debt obligations. The company did not respond as to which particular cybercriminal group was behind the incident or whether a ransom was paid. Caldwell said the company's IT systems will be restored "no earlier than the first quarter of 2025."

The American division of the company was created in 2013 and distributes all its products in the United States. In addition to Stoli vodka of the same name, the company owns several other international alcohol brands. According to Caldwell, the financial situation of the company was under threat due to a number of external factors, which, in addition to the ransomware virus attack, include a decrease in demand for alcohol after the COVID-19 pandemic and inflation. The bankruptcy filing was "necessary to maximize the value of the company in the interests of all creditors."^[1]

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